UBER Technologies forecast quarterly core profit and gross bookings above estimates and reported market-beating results for the holiday quarter on Wednesday (Feb 7), fuelled by higher demand in its ride sharing and food delivery businesses.
It posted its first annual net profit as a public company as user retention improved, also benefiting from initiatives like memberships, corporate travel and advertising.
Shares, however, fell more than 1 per cent as Uber deferred announcements related to capital allocation plans to its investor day on Feb 14.
CEO Dara Khosrowshahi had said in September Uber was considering buybacks and dividend.
“Uber’s platform advantages and disciplined investment in new growth opportunities resulted in record engagement and accelerating Gross Bookings in Q4,” chief financial officer Prashanth Mahendra-Rajah said.
The company expects adjusted earnings before interest, taxes, depreciation, and amortisation of US$1.26 billion to US$1.34 billion in the quarter ending March, compared with expectations of US$1.26 billion, according to LSEG data.
Uber’s gross bookings forecast of US$37 billion to US$38.5 billion came in higher than expectations of US$37.33 billion.
The outlook follows strong results in the seasonally strong October-December period.
Revenue jumped 15 per cent to US$9.9 billion and gross bookings rose 22 per cent to US$37.6 billion, exceeding Wall Street targets. Its net profit nearly tripled to US$1.43 billion in the fourth quarter, thanks to a US$1 billion net pre-tax benefit from re-evaluation of the company’s equity investments.
Uber said revenue from its core ride-share business grew 34 per cent, driven in part from “outsized trip growth” in Latin America and Asia-Pacific markets.
Delivery business revenue grew 6 per cent, while gross bookings growth for the segment was the highest in two years.
“Management took the intrigue off the table for today in saying it will address capital return more formally at the investor day, said RBC Capital Markets analyst Brad Erickson, adding that those plans are top of investors’ priority. REUTERS
